Turkey’s massive gas pipeline a double-edged sword for Europe - THE IRISH TIMES

22.7.2017
Stephen Starr

The €11bn TurkStream gas project will put Turkey and Russia in a position of power

For those who saw it coming, the sight of a massive, 382-metre-long ship passing through Istanbul’s Bosphorus Strait in May said a lot about Turkey’s plans to influence Europe’s access to new natural gas supplies.

The world’s largest vessel by displacement, Pioneering Spirit comes complete with offices, accommodation for 571 people and a €2.6 billion price tag. Earlier this summer it journeyed from the North Sea – where it lifted and removed an entire 24,500-tonne decommissioned oil platform, a record engineering feat – south and then east around the European continent, and through Istanbul.

Atwood Advantage Is Too Expensive For Noble Energy. Ensco May Not Like It - SEEKING ALPHA

Drillship Advantage

Jul. 21, 2017 1:46 AM ET

Summary

• On July 18, 2017, the Leviathan partners and Noble Energy decided to terminate a contract with Atwood Advantage and promote a contract with another drilling rig.
• The Atwood Advantage was working for Noble Energy in Israel at $581K/d until August 2017. So, the loss is limited, but it is still a solid negative.
• This new termination is a wake-up call for Ensco and its shareholders. The acquisition of Atwood seems overvalued and unnecessary at the moment, in my opinion.

The Atwood Advantage is a DP3 Drillship, delivered by DSME in 2013, capable of operating at 3,658 meters (12,000 ft.) of water, drilling depths of up to 12,200 m (40,000 ft.) and has accommodations for 200 personnel.

Turkish Prime Minister warns Cyprus of "untimely and dangerous" energy moves - WORLD OIL / REUTERS

Turkey has itself to blame for staying out of the game 

JULY/20/2017

By TULAY KARADENIZ AND MICHELE KAMBAS

NICOSIA (Reuters) -- Turkish Prime Minister Binali Yildirim on Thursday warned Cyprus its moves to explore for energy around the eastern Mediterranean were "untimely and dangerous," adding that Ankara would continue to protect the rights and interests of Turkish Cypriots.

Ankara has said it will take measures against Cyprus for engaging in gas and oil exploration around the divided island, arguing it has no jurisdiction to explore for hydrocarbons.

"Turkey thinks there is an opportunity for cooperation on energy resources in the eastern Mediterranean but the unilateral steps by the Greek Cypriot side are untimely, dangerous and encourage a deadlock," Yildirim said.

Bulgaria, Greece, Romania, Hungary to connect gas networks - ROMANIA INSIDER

20 Jul 2017 

Gas companies in Bulgaria, Greece, Romania and Hungary have agreed to unite their gas networks to increase the supply security in South-Eastern Europe, the Bulgarian Energy Ministry said yesterday, Reuters and BTA reported.

State-owned Transgaz (Romania), Bulgartransgaz (Bulgaria), DESFA (Greece), FGSZ (Hungary) and ICGB, the company responsible for the development, construction and operation of the Greece-Bulgaria Interconnector, signed a memorandum yesterday in Bucharest.

It will be the basis for building the necessary gas pipeline system to transport natural gas to transit countries and the European market, from Greece through Bulgaria, Romania and Hungary and vice versa, reads a press release of the Bulgarian Energy Ministry.

Turkey Lobbying Israel to Push Cyprus on Approving Gas Pipeline - BLOOMBERG

July 20, 2017, 3:25 PM GMT+3
Selcan Hacaoglu

• Officials of both nations discussed gas cooperation last week
• Negotiations over creating a new federal Cyprus have collapsed

Turkey wants Israel to use its clout to push Cyprus into allowing a pipeline to pass through its waters so the region’s natural gas can be exported to Europe.

“Israel, as a dominant force in the region, could push Cyprus to agree to a compromise deal on the drilling of gas and construction of an export gas pipeline via Turkey” to the benefit of all sides, said Reha Denemec, an adviser to Turkish President Recep Tayyip Erdogan. Officials from both countries discussed possible cooperation on gas during a conference last week in Istanbul, he said. Israel’s Energy Ministry had no immediate comment.

Israel and Turkey patched up ties recently after years of diplomatic estrangement and are eager to advance an energy deal that would help transform Israel into a gas exporter and bolster Turkey as a key gas portal for European states. One key obstacle has been Turkey’s conflict with Cyprus, which has been divided since 1974, with northern Cyprus controlled by a self-declared state supported by Turkey. The latest round of United Nations-sponsored reunification talks faltered earlier this month.

Gazprom starts TurkStream 2 natural gas pipeline preparations - PLATTS

London (Platts)--20 Jul 2017 1106 am EDT/1506 GMT

Stuart Elliott, Rosemary Griffin, Siobhan Hall

Russia's Gazprom has begun carrying out preparations for the laying of the second string of the two-line TurkStream natural gas pipeline to Turkey, a company spokesman said Wednesday, but he denied a report in a Russian newspaper that pipe-laying in the Black Sea for the second string had started.

TurkStream -- whose two lines will each have a capacity of 15.75 Bcm/year -- is designed to supply the Turkish domestic market and markets in southeast Europe, bypassing the traditional transit route via Ukraine.

Libya's ascendant oil boss poses challenge for Saudi Arabia, Russia - WORLD OIL / BLOOMBERG

By ANGELINA RASCOUET AND SALMA EL WARDANY on 7/19/2017

LONDON (Bloomberg) -- Libya’s rebounding oil output is undermining the supply curbs masterminded by Saudi Arabia and Russia. But any pleas for the OPEC member to exercise restraint will probably be resisted by the technocrat overseeing the North African nation’s turnaround.

Production has climbed to a four-year high of 1.1 MMbpd, with Libya adding output since April that’s equivalent to more than a quarter of the cuts agreed by OPEC and its allies.

The restoration of Libyan oil supply has put the spotlight on National Oil Corp. Chairman Mustafa Sanalla, whose influence has waxed in a country divided between a weak United Nations-backed government in the west and a military strongman in the east. When OPEC meets with Russia in St. Petersburg this week, the 56-year-old petrochemical engineer will speak for a nation that’s causing as much angst as U.S. shale drillers.

With Turkey fuming, French Frigate patrols off Cyprus, energy drilling begins - NEW EUROPE

Turkish military search and rescue exercise with helicopters & ships
near Ammochostos, Cyprus, June 14, 2017

JULY 19, 2017, 19:49
Kostis Geropoulos

French-Italian consortium hunts energy, Cyprus ignores Ankara’s warnings

French Minister for Armed Forces Florence Parly visited Cyprus for the first time on July 17 as a consortium of France’s Total and Italy’s ENI begun drilling in Block 11 of the Mediterranean island’s Exclusive Economic Zone (EEZ), despite threats from neighbouring Turkey.

Parly was reportedly briefed by her Cypriot counterpart Christoforos Fokaides on Total’s drilling in Cyprus’ EEZ. Fokaides met Parly at the Zenon crisis management centre in Larnaca, ahead of her visit to the French Navy frigate Languedoc, which is currently operating in the East Med, Cyprus Mail reported.

Cyprus government spokesman Nicos Christodoulides said on July 17 the natural gas exploration was going as planned. “There is nothing causing concern or affecting our energy planning,” he said.

Shell, Petronas to begin work on Borollos gas field 9B in 4Q2017 after delays - ENTERPRISE / AL SHOROUK

Wednesday, 19 July 2017

Royal Dutch Shell and Malaysia’s Petronas will begin work on phase 9B of the Borollos gas field in 4Q2017, after having suspended work last year over pricing disagreements with the government, Oil Minister Tarek El Molla said, according to Al Shorouk. 

The two sides eventually reached an agreement, but work on the field later stalled again as the state fell behind on payments to Shell and BG. 

The USD 950 mn project will produce between 350 and 400 mcf/d once operational.

UK embassy launches Oil & Gas International Scholarship Programme for Egyptian students - AHRAM ONLINE

Tuesday 18 Jul 2017

The British Embassy in Egypt launched the Oil and Gas International Scholarship Programme on Monday for up to 2,000 Egyptian employees over the coming five years to meet the changing needs of businesses in the oil and gas sector, according to an embassy statement.

The programme, which is the largest scholarship program in its sector in Egypt, aims to "support the work of the Egyptian government as it modernises the oil and gas sector," the embassy said in an emailed statement late on Monday.

The program was designed by the International Academy for Advanced Research and Studies (IARS) and its training partner Pearson, the largest awarding body in UK, in cooperation with Oil and Gas Skills Egypt (OGS). It will provide accessible and affordable high-quality international training programs, the embassy statement said.

Delek Drilling to get $980 million for spinning off Tamar stake - REUTERS

JULY 18, 2017 / 2:13 PM / 4 DAYS AGO

JERUSALEM (Reuters) - Israel's Delek Drilling (DEDRp.TA) said on Tuesday it expected to get $980 million from spinning off a 9.25 percent stake in the Tamar natural gas project.

The new company, Tamar Petroleum (IPO-TAMA.TA), is in the process of listing on the Tel Aviv Stock Exchange.

Tamar Petroleum this month raised $650 million in a Tel Aviv debt offering and another $330 million in a share offering on Monday.

The transaction gives the Tamar field, Israel's primary supply of natural gas, a valuation of close to $12 billion.

French Armed Forces Minister expresses support towards Cyprus - CNA

CNA - CYPRUS/Larnaca 17/07/2017 21:46

Cypriot Minister of Defence Christoforos Fokaides and French Minister for Armed Forces Florence Parly, met on Monday in Larnaca.

During the meeting, Fokaides briefed Parly on the government’s actions to support the drilling by French company Total in Cyprus’ exclusive economic zone, while Parly expressed France’s support to Cyprus and also expressed gratitude for the help in the fight against terrorism.

Fokaides said Cyprus and France were pylons of stability in the south-eastern Mediterranean, and pointed out the need to strengthen relations and cooperation between the two countries.

Natural gas exploration going as planned – government - CYPRUS MAIL

Drilling ultra-deepwater drillship West Capella commenced

July 17, 2017
George Psyllides

The republic’s natural gas exploration was going as planned, the government said on Monday, with results expected in the autumn.

“What I can tell you with certainty is that everything is going as planned,” government spokesman Nicos Christodoulides told state radio.

Energy giant Total is drilling in block 11 of the island’s exclusive economic zone (EEZ), amid threats from Turkey, which has dispatched at least one warship to monitor the situation.

Christodoulides said the proper authorities are monitoring the situation on a daily basis and that when a statement needs to be made it will be made.

“There is nothing causing concern or affecting our energy planning,” he said.

UPDATE 1-Egypt sets sights on doubling natural gas output by 2020 - REUTERS

JULY 17, 2017 / 12:22 PMReporting by Ehab Farouk; Writing by Amina Ismail; editing by Patrick Markey and Adrian Croft

CAIRO, July 17 (Reuters) - Three recently discovered major gas fields are expected to raise Egypt's natural gas output by 50 percent in 2018 and 100 percent in 2020, the petroleum ministry said.

"The fields of Zohr, North Alexandria and Nooros are among the most important projects that will increase natural gas production ... and will contribute to (Egypt’s) natural gas self-sufficiency by the end of 2018," Petroleum Minister Tarek El Molla said in a statement, which set out the production forecasts.

Egypt's natural gas production rose to about 5.1 billion cubic feet per day in 2017 from 4.4 billion cubic feet in 2016 with the start of production from the first phase of BP's North Alexandria project.

Energean to sell more gas to Israel - KATHIMERINI / REUTERS

17.07.2017 : 21:39

Israel’s Oil Refineries (ORL) (now Bazan Group) said on Sunday it is in talks to buy 17 billion cubic meters of natural gas from Greek exploration and production firm Energean.

ORL, together with Israel Chemicals and OPC Rotem, are negotiating non-binding memorandums of understanding to buy gas supplies from Energean, ORL said in a statement to the Tel Aviv Stock Exchange.

The deals would be the second for Energean for selling gas from the Tanin and Karish fields offshore Israel.

ORL did not say how much it was hoping to pay in the deal, which could last up to 15 years.

A Natural Gas War Is Brewing In The Mediterranean - OILPRICE.com

Jul 16, 2017, 12:00 PM CDT
Cyril Widdershoven

Offshore gas developments in the East Mediterranean region are heating up. Alongside increased exploration efforts and a possible gas pipeline deal between Turkey and Israel, geopolitical risks are increasing too. While commercial prospects are starting to look good for all parties, a real military conflict is also brewing and may come to a head if Cyprus, Greece and Turkey are not able to find a solution soon.

Optimism has been high of late about the prospects of offshore Cyprus gas developments, not only due to the increased interest and agreements reached by Nicosia and several international partners, but also based on a possible Cyprus reunification success. However, the latest development has once again proved to be in vain, as the two main stakeholders, [Greek Cypriots] and [Turkish Cypriots], were again not able to find a solution to solve the dispute. Both sides still accuse each other of being unwilling to reach a final solution. This continuing military standoff could threaten the ongoing offshore oil and gas exploration projects of French oil major Total and Italian major ENI. The oil majors have stated that they will start their offshore drilling operations at Block 11 on July 16.

Egypt plans $4bln petrochemical complex in Suez: minister - ZAWYA / AMWAL AL GHAD

16 JULY, 2017
Ahmed Fayez

Egypt is planning to establish a petrochemical complex in Suez, with an investment cost worth more than $4 billion, Petroleum Minister Tarek el-Molla said Thursday.

The Ministry of Petroleum will build the complex in partnership with Ministry of Public Business Sector, el-Molla added in a press conference.

The Egyptian Petrochemicals Holding Company (ECHEM) as well as refineries affiliated to the petroleum sector will also cooperate to implement the project, the Egyptian minister said.

The Japanese manufacturer Toyota will be in charge of the industrial technologies needed for the complex, he added.

Total is off the blocks - IN CYPRUS / CYPRUS WEEKLY

July 16, 2017
By Charles Ellinas

Total is at last off the blocks. After a number of delays and uncertainties the drilling rig is now at location. Cyprus is watching developments with great expectation.

Following the recent disappointments in Switzerland, a successful gas discovery by Total-Eni at the Onesiphoros prospect will certainly lift spirits. Drilling in Cyprus’ EEZ is entering a definitive period, with as many as four and possible seven wells to be drilled over the next 12 or so months.

But the inevitable euphoria that will come with discoveries should be tempered by the challenging global gas markets and prices. Finding gas is only the beginning of the process. We must also sell it to realise the benefits.